Weekly The Generation, Year 1, Issue 17
December 26, 2023
LONG ISLAND: Many home buyers across the Tri-State Area are rejoicing as mortgage interest rates start to tick down a bit. But what will the upcoming New Year look like? Will it be a buyers’ market or a sellers’ market?
Experts say it could be a mixed bag, “If you’re thinking about selling your home, this is absolutely the time to do it,” said Mike Mclean, licensed real estate agent at Signature Premier Properties.
Mclean thinks now, and most of 2024, will still be a sellers’ market, despite mortgage interest rates still higher than most would like. “The buzz that we have been hearing for the last several years is going to continue,” Mclean said.
Accordingb the National Association of Realtors, home prices are still costly due to lack of inventory. It’s keeping the market hot. Many home owners refinanced when interest rates were historically low, and don’t want to sell.
“A lot of people are on the fence right now,” Mclean said. “I think a big part of that is because, once you sell, where am I going to go?”
While it may take a while, once new homes do go on the market, it could start to even out the demand.
In July, Gov. Kathy Hochul issued new executive orders to increase housing supply. “We have not kept up with the need for building housing for decades,” Hochul said during a press conference this summer.
Experts predict once interest rates start to level out or even drop significantly, which could happen at the end of 2024, demand will skyrocket again. “It’s going to be very hard to predict when that rubber band or that sling shot snaps, but it’s going to, and I predict it will happen in 2024,” said Jason T. Reddish, CEO of Total Merchant Resources.
Reddish thinks buyers will soon wake up from sticker shock. “Once the average consumer accepts what home prices are right now, if interest rates just tick down a little bit, I think you’re going to see a major catalyst and a major increase in business,” Reddish said.
Experts predict if you buy a home in early 2024, you could be stuck with less options. However, you may find a cheaper house, while dealing with a more expensive interest rate until you can refinance.
If you wait until end of 2024, there could be more homes to choose from, but you will be dealing with a higher price point and a cheaper interest rate. Although, experts say bidding wars will likely be back in full force.
Reddish says despite the options, buying is usually better than renting. He suggests paying your own mortgage. “Are you going to rent, and pay your landlord’s mortgage?” questions Reddish.
Experts say older generations, who tend to have more cash to put down on homes, are still going to continue to play a major factor in the 2024 housing market.
Source: CBS News